Jul 2 2018
06:00 am

The Washington Post has an inside look at a relatively new type of predatory lender. Instead of payday loans, title loans and the like, this company specializes in "consumer installment loans" for people with less than stellar credit. They reel in borrowers by sending out millions of checks. When someone cashes one of the checks, they are signing up for a loan that carries 33% interest, additional fees and "insurance." And it's all perfectly legal.

‘A way of monetizing poor people’: How private equity firms make money offering loans to cash-strapped Americans

According to the article, the company is "especially active in Virginia, Maryland, Tennessee, Pennsylvania and Florida." They have a Knoxville office.

Paul Witt's picture

This isn't new

One of many ways that poor people are exploited. Take a look around the Broadway Shopping Center the next time you're in that area. People always focus on the Fellini Kroger but the entire site should be renamed Vulture Plaza. They have a check cashing place, payday loans, installment loans, a pawn broker and two rent-to-own stores. Not to mention the two dollar stores.

Not enough is done to crush these businesses and give people easier access to whatever money they have.

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